Greens give go-ahead on mining tax

Prime Minister
Julia Gillard
has locked in Greens support for the minerals resource rent tax by guaranteeing monthly revenue reviews and leaving the way open to increase the tax take.

With the Senate due to vote on the legislation by 9.15pm on Monday, Ms Gillard has written a letter to Greens leader
Bob Brown
offering to publish monthly updates on the tax’s revenue and where the money is spent.

“It’s a very important moment, what it shows is that this government can get the job done," leader of the government in the Senate Chris Evans told ABC television on Monday. “This will allow us to ensure that we do benefit from the mining boom.

“It will be a very significant victory for the government."

A more detailed review will be conducted after six months.

“These important transparency reviews will keep the public apprised of the functions of the new tax,’’ the Prime Minister said.

The Greens have indicated they will support the tax but have demanded extra transparency.

Senator Brown said on Sunday the reviews were a “start’’ but what was needed was a “stronger review with the aim of increasing the tax take as soon as possible’’.

Related Quotes

Company Profile

He also defended the decision by the Greens to block mining tax-linked tax cuts to big business, saying tax cuts should be limited to small businesses because the revenue was needed for “much-needed nation-building reforms including schools funding, [universal dental care scheme] Denticare, national disability insurance, high-speed rail and the creation of a sovereign wealth fund’’.

Opposition Leader
Tony Abbott
has maintained that any tax cut paid for by a tax increase in another sector is “a con" and is steadfastly opposed to it.

The Greens have said they will block the $2.5 billion tax cut to big business and only allow the deductions to go to small businesses with an annual turnover of less than $2 million.

The planned business tax cuts are due to start from July 1.

Treasurer
Wayne Swan
on Sunday warned that the opposition was standing in the way of tax cuts for all companies, including 2.7 million small businesses.

“Unfortunately, the Coalition is going to vote against these important reforms – Tony Abbott would prefer to give a tax cut to super profitable mining companies,’’ Mr Swan said.

The Treasurer said resources were owned by all Australians and the tax was about more equitably sharing the proceeds of the mining boom.

He said mining investment was expected to grow from $47 billion in 2010-11 to $120 billion in 2012-13.

The development came as Shadow Treasurer
Joe Hockey
refused to commit a future Coalition government to lower business tax rates than Labor.

Mr Hockey insisted on Sunday that axing the government’s carbon tax and eliminating government waste and duplication would give a Coalition government room to move on modest tax cuts to business. But after initially suggesting in a Channel Ten interview that “overall, tax under the Coalition will be lower than under Labor’’, he refused to guarantee that businesses would not pay more tax under a Coalition government.